Toronto-based Ratehub has raised a $12 million Series A investment led by Elephant, a Boston-based VC firm founded by Jeremiah Daly and Andy Hunt, co-founder of Warby Parker. Simon Nixon, co-founder of UK-based MoneySuperMarket, also participated in the funding round.
Daly — whose firm invested out of its $156 million fund — will join the RateHub board of directors. Founded in 2010, RateHub allows users to compare prices on financial products like mortgages and credit cards. It also operates CanWise Financial, a national mortgage brokerage which funds over $1 billion of annual mortgage volume.
“Canadians don’t always look at all of their options when they need a new financial product.”
In August 2016, the company secured $495,000 through the National Research Council of Canada’s Industrial Research Assistance Program as it looked to expand investment in new products. It also regularly publishes reports on trends in the FinTech space, often highlighting the eagerness of millennials to adopt FinTech products compared to older generations.
“Canadians don’t always look at all of their options when they need a new financial product, due to ingrained loyalty to their home bank,” said Alyssa Furtado, co-founder of Ratehub and CEO of Ratehub.ca. “We are looking forward to launching new and enhanced financial product comparisons, and to continuing to bring financial transparency to Canadians.”
Ratehub plans to use the funding to build a platform that will allow Canadians to go through the entire mortgage process online. It will also invest in its existing verticals, and this year launch a new suite of tools allowing Canadians to compare home, auto, and life insurance policies.
“Ratehub’s founders have executed on an ambitious vision to build the leading source of financial information for Canadian consumers, alongside a marketplace to connect them with financial institutions. They offer a compelling value proposition to both parties that doesn’t otherwise exist in Canada,” said Jeremiah Daly, co-founder and General Partner at Elephant. “With this initial investment in Ratehub, we’re looking forward to seeing the company continue to scale and lead the Canadian market.”